Amazon ends budget Fire tablets and launches Alexa tablets priced $230 to $550

Amazon announced new Alexa tablets on 8 October and said it is discontinuing its budget-friendly Fire lineup, CNBC reported. The 8-inch, 11-inch and 12-inch models start at $230 and run up to $550. The devices were available for preorder on 8 October and begin shipping on 14 October, according to CNBC.

All of the new tablets run Google's Android operating system with access to the Google Play Store, according to CNBC and Wired. Earlier models used a custom Android version called Fire OS and Amazon's own app store, which CNBC reported limited the number of apps available. It is the first time Amazon has attached the Alexa brand, first launched in 2014 via the Echo smart speaker, to a set of devices, CNBC reported. Alexa appears through a "dynamic tab" on the home screen and an "Ask Alexa" button, and Amazon introduced a feature called "On-Screen Intelligence," which Wired reported lets the assistant read the screen and answer contextual questions if users opt in.

The $550 Alexa Tablet 12 Pro costs more than double the $155 Fire HD 10, Amazon's base model, and is closer to Apple's iPad, which runs from $449 to $1,199, CNBC reported. Amazon said the tablets' improved speed and performance, artificial intelligence features and upgraded design warrant the higher price, CNBC reported. The company denied that rising memory costs played a role in the pricing decision. Panos Panay, Amazon's devices chief, told CNBC the shortage made it "quite tricky" to build a premium tablet at a reasonable price without "trade-offs," and said the team "did a good job designing without making that trade."

Amazon is also introducing Kids Tablets with parental controls, The Verge reported. An 8.7-inch model starts at $229.99 with 64GB of storage and a battery rated for up to 14 hours of video playback, while an 11-inch model starts at $329.99 with a 2.5K display, 8GB of RAM and stylus support. Both ship from 14 October in the US, according to The Verge. Each includes a one-year Amazon Kids Plus subscription, and a pre-installed Parent Dashboard lets parents set screen-time limits and approve Google Play downloads, including remotely through iOS and Android apps, The Verge reported.

Wired reported that a Reuters report earlier this year described an Amazon device, codenamed Transformer, in development with the Alexa+ assistant as its focus. Wired wrote that the new tablets offer a blueprint for what an Android-powered Amazon phone could look like. Kevin Keith, Amazon's vice president of devices, told Wired the company "didn't really have the right product to be able to use" the new capabilities. Asked about a phone, he said, "We have nothing to share on that. Interesting idea," according to Wired.

CNBC reported that Amazon has historically sold its devices at or near manufacturing cost to undercut competitors and promote its other products and services. Under CEO Andy Jassy, who succeeded founder Jeff Bezos in 2021, the company has taken steps to earn more from its devices business, including pricier Echo speakers last year and an Alexa+ subscription for non-Prime members, according to CNBC. In August, Amazon raised prices on Echos, Kindles, Fire TVs and other hardware, citing memory costs, CNBC reported. Earlier this year, Apple raised prices on MacBooks and iPads, and Nintendo raised the price of its Switch 2 console, according to CNBC.